Real and effective ACAMS cams exam Practice Questions

QUESTION 1Financial Action Task Force (FATF)-style regional bodies are created and obliged to understand the inherent moneylaundering and terrorist financing risks in the region of the world they serve.What is one of the methods they use to understand these risks?A. They require member countries to develop statistical metrics over money laundering and terrorist financing crimesB. They require participating financial institutions of their members to file suspicious transaction reports to the regionalbodyC. They conduct global research on money laundering and terrorist financing trends and report their findings in their owntypologies reportD. They conduct regional-level research and analysis of the money laundering and terrorist financing methods andtrends using standards and templates used for FATF typologies reportsCorrect Answer: BReference: https://www.fatf-gafi.org/media/fatf/documents/recommendations/Private-Sector-Information-Sharing.pdf(18)

QUESTION 2The purpose of an anti-money laundering program should be to do what?A. Detect all illegal activity perpetrated by customersB. Avoid criticism and sanctions from government regulatorsC. Focus monitoring efforts on riskier transactions and customersD. Detect and report cash structuring and suspicious wire transactionsCorrect Answer: C

QUESTION 3The branch manager calls the compliance officer and informs her that a law enforcement officer has just left the branchand was asking a lot of questions and left a business card. What should the compliance officer do?A. File a suspicious transaction reportB. Follow up to verify that the officer received all necessary informationC. Verify that the reported officer was an actual authorized representativeD. Require the branch manager to write a detailed memo about the requestCorrect Answer: C

QUESTION 4Historically, a tour guide has made monthly cash deposits averaging $10,000. Over the past three months, the monthlydeposits have averaged $100,000. When the financial institution questions the increased deposits, the tour guideexplains that there have been numerous conventions in town so the business has increased substantially.Which further action(s) should the financial institution take?A. Immediately terminate the relationshipB. Schedule a periodic review of activityC. Perform further investigation, it appropriates to report the activity to the authorities and consider terminating therelationshipD. Perform further investigation, if appropriate report the activity to the authorities and place a limit on futuretransactionsCorrect Answer: C

QUESTION 6An account officer who maintains an excellent relationship with the finance manager for a correspondent bank customerlearns that many records for the correspondent bank have been requested by law enforcement. In the interest ofmaintaining a good relationship with the customer, the account officer sets up a meeting to discuss the legal requestwith the customer. The account officer intends to discuss points related to the investigation during the meeting. Whatshould an anti-money laundering specialist recommend?A. Discuss all the points being investigated by law enforcement to ensure the correspondent bank is well prepared whenapproachedB. Let the account manager\\’s manager know what conversations have taken place with the customer and documentthe account file accordinglyC. Limit discussions about the investigation with the customer and be satisfied that the account manager has providedproper notice to the customerD. Canceled the meeting as he has already behaved inappropriately by alerting to the investigationCorrect Answer: C

QUESTION 7Which two aspects of precious metals pose the highest risk of money laundering? (Choose two.)A. Some precious metals can be formed into other objects, making easier to transportB. Precious metals have high intrinsic value in a relatively compact form and are easy to convert into currencyC. The value of precious metals can be inflated easily, making it easy to increase the amount of money launderedD. Precious metals can be readily used in many high-tech commercial applications, making them all the more valuableCorrect Answer: BD

QUESTION 10In relationship to life insurance business, the third European Directive states that Member States may allow the identityverification of the beneficiary under the policy after the business relationship has been established, but before whichevents?A. At or before a premium payment has been accepted for the policy purchasedB. At or before the policy is issued to the beneficiary by the insurance companyC. At or before the time of payout or before the beneficiary intends to exercise rights vested under the policyD. At or before 30 days of the relationship being established under the policyCorrect Answer: C

QUESTION 11What are two requirements with respect to supporting documentation that is used to identify potentially suspiciousactivity, according to the Financial Action Task Force? (Choose two.)A. It must be retained for at least five yearsB. It must be retained for at least seven yearsC. It must be kept in a manner so that it can be provided promptlyD. It must only be released to the government through a subpoena processCorrect Answer: ACReference: https://www.fatfgafi.org/media/fatf/documents/recommendations/pdfs/FATF%20Recommendations%202012.pdf

QUESTION 12What should countries do to help prevent non-profit organizations from being abused for the financing of terrorismaccording to the Financial Action Task Force 40 Recommendations?A. Allow for freezing assets of non-profit organizationsB. Require all non-profit organizations to register with the country\\’s financial intelligence unitC. Ensure non-profit organizations cannot be used to conceal or obscure the diversion of funds intended for legitimatepurposes to terrorists\\’ organizationsD. Create laws that forbid non-profit organizations from completing cross-border transactions without first running themthrough known terrorist databasesCorrect Answer: CReference: http://www.fatf-gafi.org/media/fatf/documents/reports/BPP-combating-abuse-non-profit-organisations.pdf(p.9)

QUESTION 13A bank has maintained an account for a European charity for several years. The charity provides clothing to persons inneed in various countries with active terrorists\\’ cells. Which action by the charity indicates possible terrorist financing?A. The charity frequently withdraws cash from the bankB. The charity has branch locations located in various countriesC. The charity receives cash donations primarily from European countriesD. The charity maintains a bank account for non-business-related expensesCorrect Answer: BReference: https://www.fatfgafi.org/media/fatf/documents/reports/FATF%20Terrorist%20Financing%20Typologies%20Report.pdf

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